In the first three quarters of 2020, older homeowners used their property wealth to gift £530m to family and friends, new analysis from Key has revealed.

The equity release adviser suggested that help with housing deposits and early inheritances were the main consistent drivers behind the generosity.

Key’s data showed that over-55s provided the most of any group in Q3, gifting £221m to younger members of their families, with £100m being pumped into the housing market – potentially due to the temporary stamp duty holiday, Key suggested. Over 2020, the total amount used for housing deposits was £230m.

Average gifts to families were as high as £133,000 from older homeowners in London, while people in the East Midlands and Wales were revealed as the most likely to be helping out with house deposits.

“Helping out family and friends has always been a major motivator for older homeowners using equity release but it is striking to see that more than half a billion has been gifted thus far in 2020,” said Key CEO, Will Hale.
 
“Our data suggests that while customers have focused on using their property wealth to shore up their own finances by repaying debt or boosting their income, they are still looking to support their families rather than spending money on themselves for holidays or even on home and garden improvements. 
 
“The temporary stamp duty cut is an opportunity to ensure that financial help goes further and is likely to mean demand for equity release remains strong as more people want to provide help to family members to get them on, or moving up, the property ladder.”

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